Investigating and analyzing the flow of remittances and its impact on the income, consumption and savings of households in Afghanistan

Document Type : Original Article

Authors

Rahman Saadat ¹

Zabiullah Saadat ²

Majid Maddah ³

¹ Semnan University, Faculty of economics. Semnan city

² Department of Economy, Faculty of Economics and Management, Semnan University, Semnan City

³ Semnan University. Faculty of Semnan. Semnan city

https://doi.org/10.22067/erd.2025.90821.1259

Abstract

Abstract

The emerging and developing countries of South Asia, including Afghanistan, receive significant amounts of international remittances annually. So sometimes, the inflow of remittances of these countries is estimated to be more than foreign direct investments FDI. The 4.6 million migrants from Afghanistan in all over the world has provided a suitable potential capacity for inflow remittances to its country. From this point of view, it is necessary to study and analyze the economic effects of the remittance flow to Afghanistan. This article studies and evaluates the issue of Afghanistan's remittance and its effects on households’ economy. In this research, the field method was used and the data was collected by questionnaires. The findings show that about 36% of households in Afghanistan receive 1987$ on average remittances annually. Also, the estimates of the structural equation model based on partial least squares PLS-SEM indicate that remittances have a positive and significant effect on the income, consumption expenditures and savings of the households, thus the flow of remittances has positive consequences the economy of Afghanistan

Keywords

Keywords: migration

remittance

Afghanistan

structural equations based on partial least squares PLS-SEM

Subjects

• International Economics

---